Transfer Motion Denied Where Defendants Did Not Show That Case Could Have Been Filed in Proposed Transferee Jurisdiction

Defendants moved to transfer a multi-defendant patent infringement case from the Eastern District of Texas to the Eastern District of Michigan. The defendants asserted that transfer was appropriate under 28 U.S.C. §1404(a) due to factors of convenience. The plaintiff opposed the motion on the ground that the defendants had not shown that the case could have originally been filed in the Eastern District of Michigan. The court agreed with the plaintiff and denied the motion to transfer.

The court began its analysis by examining whether the action could have originally been filed in the Eastern District of Michigan. Noting that “[w]ell established authority makes clear that a transferee court must have specific jurisdiction over the defendants in the transferred complaint,” the court found that the moving parties had not established that the case could have been brought in Michigan. The court stated that the moving parties had attempted to establish jurisdiction over all the defendants in Michigan by arguing a stream of commerce theory, i.e., that defendants products were sold in the state of Michigan.
The court found that the declarations submitted by the moving parties were insufficient in that they provided no evidence that the accused products were available in Michigan. The moving parties had apparently relied on the fact that because the products were at issue were cars it was apparent that they were sold in the Eastern District of Michigan without making that affirmative evidentiary showing. Therefore, the court found that the moving parties failed to meet their burden to show that personal jurisdiction is appropriate in Michigan under a stream of commerce theory.

The court also found that the moving parties only set forth a tenuous basis of showing defendants’ ties to Michigan. The court found that it was insufficient to show that a parent company (the defendant) had a subsidiary in Michigan. The court also found that the moving parties’ declarations were insufficient to support a basis for jurisdiction over a number of the other defendants because the declarations made no effort to show how the foreign corporations named in the complaint had a connection that would subject them to personal jurisdiction in Michigan.

Accordingly, the court found that the moving parties had not carried their burden to show that the cause of action could have originally been brought in the Eastern District of Michigan.

* * *

The lesson here is to have all of the defendants, if possible, state in a declaration that each of them consents to personal jurisdiction in the proposed transferee court. Absent that it is important to lay out a detailed factual basis to convince the court of the basis for jurisdiction in the transferee court. The failure to do that here proved fatal to the motion to transfer the case to Michigan.

Stragent LLC v. AUDI AG, Case No. 6:10 cv 227 LED-JDL

The authors of www.PatentLawyerBlog.com are patent trial lawyers at Jeffer Mangels Butler & Mitchell LLP. We represent inventors, patent owners and technology companies in patent licensing and litigation. Whether pursuing patent violations or defending infringement claims, we are aggressive and effective advocates for our clients. For more information contact Stan Gibson at 310.201.3548 or SGibson@jmbm.com.

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Stan Gibson

Stan Gibson, an experienced technology and IP trial lawyer, represents inventors, manufacturers, owners and others in litigation centering on complicated technology. Stan's practice is national in scope and he represents both plaintiffs and defendants and has litigated dozens of cases on behalf of his clients, taking many of them to trial. Although most cases settle, Stan's ability to take cases to trial enhances their value and drives favorable verdicts and settlements. Contact him at 310.201.3548 or SGibson@jmbm.com.

Greg Cordrey

Greg Cordrey, an experienced patent litigator and former flight test engineer, represents a wide range of industries including medical device, computer, e-commerce, semiconductor, automotive, aircraft, and consumer products. He has litigated patent cases nationwide and has practiced before the Federal Circuit and the U.S. Patent and Trademark office as a registered patent attorney with experience in concurrent litigation and patent reexamination proceedings. Greg is recognized as one of the "Best Lawyers in America" in IP Law, as well as a "Super Lawyer" and "Rising Star." Contact him at 949.623.7236 or GCordrey@jmbm.com.

Rod Berman

Rod Berman is recognized by the Daily Journal as one of the top 30 intellectual property attorneys in the State of California, and by the Los Angeles Business Journal as one of the top 100 attorneys in Los Angeles. Rod's practice focuses on patent, trademark, copyright, unfair competition and internet responsibilities and includes counseling, litigation, opinions, licensing and prosecution. In addition to being a registered patent attorney, Rod is a court-recognized expert in patent and trademark law, and has successfully argued before the Federal Circuit. Contact Rod at 310.201.3517 or RBerman@jmbm.com.

Andrew Shadoff

Andrew Shadoff, is a litigation associate who has assisted in prosecuting and defending patent infringement lawsuits involving mechanical devices. He has drafted successful summary judgment motions and pretrial motions in limine, and has assisted with trial and witness preparation. Contact him at 310.712.6856 or AShadoff@jmbm.com.